Kingstone Companies Announces Signing of New Reinsurance Treaties

Company to host conference call to discuss on July 8, 2014 at 8:30 AM
ET

July 01, 2014 04:30 PM Eastern Daylight Time

KINGSTON, N.Y.--(BUSINESS WIRE)--Kingstone Companies, Inc. (Nasdaq CM:KINS) (the “Company” or
“Kingstone”), a multi-line regional property and casualty insurance
holding company, today announced that the Company’s wholly-owned
subsidiary, Kingstone Insurance Company, entered into various
reinsurance agreements with multiple reinsurers for the treaty year
beginning July 1, 2014, highlighted by a reduction of its ceding
percentage from 75% to 55% in its personal lines business, as previously
disclosed. The Company also announced that it has non-renewed its
previous quota share treaty on its commercial lines business.

Mr. Barry Goldstein, Chairman and CEO of Kingstone, stated, “We utilized
our strengthened financial position to execute on our long-term strategy
of reducing Kingstone’s reliance on quota share reinsurance. This
results in our retaining more of the business that we originate. As a
result of reduced pricing levels in the catastrophe reinsurance
marketplace, we were able to move forward with a program that provides a
greater level of coverage to support our growth over the next year. We
look forward to detailing the various treaties and the effects that the
changes in terms will have on our financial results, in a call with
analysts along with existing and potential investors next week.”

Catastrophe Reinsurance and Personal Lines

The Company’s personal lines business consists of homeowners, dwelling
fire, condominium and renters policies, and represents approximately 73%
of the Company’s total direct written premiums during the treaty year
ended June 30, 2014. Effective July 1, 2014, the Company entered into a
one-year treaty, expiring on June 30, 2015, purchasing catastrophe
reinsurance to provide coverage of up to $141 million for losses
associated with a single event. The expired treaty provided for
$90,000,000 of coverage. The Company has utilized forecasting models to
ensure the catastrophe reinsurance treaties provide coverage in excess
of its estimated probable maximum loss associated with a single
one-in-125 year storm event. Kingstone’s maximum net retention from a
catastrophe event is now $1,800,000 before tax. Personal Lines
non-catastrophe losses are reinsured via a separate excess of loss
treaty, leaving Kingstone with an individual loss retention limit of
$360,000 pre-tax.

Commercial Lines Non-Renewal

Kingstone also announced that it has non-renewed, on a cutoff basis, the
Company’s previous commercial lines treaty (excluding commercial auto),
which consisted of small business risks, and represented approximately
16% of the direct premiums written during the treaty year ended June 30,
2014. The Company had previously ceded 25% of commercial lines written
premiums.

Conference Call Details – Tuesday, July 8, 2014

Management will discuss the new reinsurance agreement’s structure in
detail, including the effect on its financial results, in a conference
call on Tuesday, July 8, 2014, at 8:30 a.m. ET.

The Company will also have an accompanying slide presentation available
in PDF format on the Kingstone Companies website at http://www.kingstonecompanies.com/.
The presentation will be made available 30 minutes prior to the
conference call. In addition, the call will be simultaneously webcast
over the Internet via the Kingstone website or by clicking on the
conference call link: http://kingstonecompanies.equisolvewebcast.com/chng-reinsurance.
The webcast will be archived and accessible for approximately 30 days.

About Kingstone Companies, Inc

Kingstone is a property and casualty insurance holding company whose
principal operating subsidiary, Kingstone Insurance Company, is
domiciled in the State of New York. Kingstone is a multi-line regional
property and casualty insurance company writing business exclusively
through independent retail and wholesale agents and brokers. Kingstone
is licensed to write insurance policies in New York and Pennsylvania.
Kingstone offers property and casualty insurance products to individuals
and small businesses primarily in New York State.

Forward-Looking Statement

Statements in this press release may contain “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements, other than statements of historical
facts, may be forward-looking statements. These statements are based on
management’s current expectations and are subject to uncertainty and
changes in circumstances. These statements involve risks and
uncertainties that could cause actual results to differ materially from
those included in forward-looking statements due to a variety of
factors. More information about these factors can be found in
Kingstone’s filings with the Securities and Exchange Commission,
including its latest Annual Report filed with the Securities and
Exchange Commission on Form 10-K. Kingstone undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.